JJB Sports
Encyclopedia
JJB Sports plc is a United Kingdom
sports retailer. It currently operates 251 stores in the UK and Ireland.
. The original store was established by JJ Broughton in the early 1900s and later was purchased by JJ Bradburn. As these initials were all the same the business was known locally as JJB's. When Whelan bought the store from Bradburn, he kept the JJB name.
During the early 1990s, the store portfolio grew to 120 stores by 1994, at which point the company was floated on the London Stock Exchange
. In 1998, JJB bought its largest domestic competitor Sports Division
. The acquisition made JJB one of the largest sports retailers in the UK, focusing on sports clothing rather than sports equipment.
Duncan Sharpe, chief executive of JJB sports, committed suicide in 2002. Mr Sharpe had been with JJB Sports for 19 years and was the son-in-law of the firm's founder Dave Whelan. By 2005, JJB had expanded to over 430 stores throughout the UK and Ireland
. It had also opened a new branch in Amsterdam
in 2002.
On 8 June 2007, Whelan sold his residual 29% stake in the firm for £190 million to Iceland
ic financial group Exista and Chris Ronnie, a sports retailer who previously worked at Umbro
and Sports Direct
.
On 19 October 2007, JJB bought a 10.1% stake in Umbro in a move to protect its stake in the market for England football shirts. This stake was sold in its entirety to Nike
in March 2008.
In December 2007, JJB announced that they had purchased the Original Shoe Company for £5 Million. JJB considered converting some of the smaller JJB High Street stores stores into OSC stores, keeping OSC as a separate division of the JJB group which would share JJB's buying, financing and marketing functions.
In September 2008 JJB released a less than impressive set of interim results, which included a warning from the auditors raising doubts over JJB's future as a going concern. This is due to a short term loan repayment of £20 million due before the end of 2008. It was noted that if this could not be repaid from normal trading cashflow then JJB will be advised to sell some (unspecified) non-core assets to cover the shortfall. JJB's net worth was only £28 million in the beginning of October 2008.
In October 2008 the value of JJB shares fell to less than 10% of the value at the time of Dave Whelan's share sale to Chris Ronnie and Exista. This was partly in response to the interim financial report and also as a result of Coface removing credit insurance from debts owed by JJB to their suppliers. Three weeks later 34% (majority share) was purchased by Sports Direct International PLC
. The fee is still to be reported.
On 10 February 2009, JJB put their Qube and Original Shoe Company subsidiaries into administration after failing to find a buyer. By the end of the week the Group secured a reprieve from its bankers to avoid putting the whole group into administration.
On 13 October 2009, JJB admitted that former executives were being investigated by both HM Revenue & Customs and the Serious Organised Crime Agency
.
, Adidas
, Puma
, and Reebok
. Although they still stock own branded products such as Patrick (Menswear & Football Accessories), Olympus (Womenswear & Fitness Accessories, and Champion.
JJB now no longer operates the famous "Soccerdomes", nor any GYMs or Fitness Clubs outside of Ireland
. Also, because of Dave Whelan's purchase of the Fitness Club and founding of DW (Dave Whelan) Sports in the autumn of 2009, JJB has lost its association with FC and Wigan Warriors
RLFC. The stadium has also been renamed the DW Sports Stadium.
On 7th September 2011 JJB Sports launched a major new marketing campaign entitled "Ready?". The campaign involves prime time television advertising, national press coverage, in store promotions and online competitions. The Ready campaign is JJB Sport's first appearance on television for over 4 years and represents the company's push to become profitable again.
consumer magazine issued proceedings against JJB Sports to sue the high street retailer for damages on behalf of consumers who were affected by the price fixing. JJB may be fined a further £41.3 million for distorting the tennis racket market with its 'Slazenger' range in 2008.
JJB also operate health and fitness centres in the Republic of Ireland.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
sports retailer. It currently operates 251 stores in the UK and Ireland.
History
The sportshop chain was founded in 1971, when ex-footballer Dave Whelan acquired a single sports shop in WiganWigan
Wigan is a town in Greater Manchester, England. It stands on the River Douglas, south-west of Bolton, north of Warrington and west-northwest of Manchester. Wigan is the largest settlement in the Metropolitan Borough of Wigan and is its administrative centre. The town of Wigan had a total...
. The original store was established by JJ Broughton in the early 1900s and later was purchased by JJ Bradburn. As these initials were all the same the business was known locally as JJB's. When Whelan bought the store from Bradburn, he kept the JJB name.
During the early 1990s, the store portfolio grew to 120 stores by 1994, at which point the company was floated on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. In 1998, JJB bought its largest domestic competitor Sports Division
Sports Division
Sports Division was one of the biggest sports retailers in the United Kingdom during the 1990s. In 1998 it was sold to its main competitor, JJB Sports for approximately £295 Million....
. The acquisition made JJB one of the largest sports retailers in the UK, focusing on sports clothing rather than sports equipment.
Duncan Sharpe, chief executive of JJB sports, committed suicide in 2002. Mr Sharpe had been with JJB Sports for 19 years and was the son-in-law of the firm's founder Dave Whelan. By 2005, JJB had expanded to over 430 stores throughout the UK and Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. It had also opened a new branch in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
in 2002.
On 8 June 2007, Whelan sold his residual 29% stake in the firm for £190 million to Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic financial group Exista and Chris Ronnie, a sports retailer who previously worked at Umbro
Umbro
Umbro is an English sportswear and football equipment supplier based in Cheadle, Greater Manchester, England. The company is now part of Nike. Umbro designs, sources, and markets sport-related apparel, footwear, and equipment...
and Sports Direct
Sports Direct
Sports Direct International plc is a British retailing group. Founded in 1982 by former county squash coach Mike Ashley, the company is now the UK's largest sporting retailer through a number of retail subsidiaries and sports equipment brands. Although now a publicly traded company on the London...
.
On 19 October 2007, JJB bought a 10.1% stake in Umbro in a move to protect its stake in the market for England football shirts. This stake was sold in its entirety to Nike
Nike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...
in March 2008.
In December 2007, JJB announced that they had purchased the Original Shoe Company for £5 Million. JJB considered converting some of the smaller JJB High Street stores stores into OSC stores, keeping OSC as a separate division of the JJB group which would share JJB's buying, financing and marketing functions.
In September 2008 JJB released a less than impressive set of interim results, which included a warning from the auditors raising doubts over JJB's future as a going concern. This is due to a short term loan repayment of £20 million due before the end of 2008. It was noted that if this could not be repaid from normal trading cashflow then JJB will be advised to sell some (unspecified) non-core assets to cover the shortfall. JJB's net worth was only £28 million in the beginning of October 2008.
In October 2008 the value of JJB shares fell to less than 10% of the value at the time of Dave Whelan's share sale to Chris Ronnie and Exista. This was partly in response to the interim financial report and also as a result of Coface removing credit insurance from debts owed by JJB to their suppliers. Three weeks later 34% (majority share) was purchased by Sports Direct International PLC
Sports Direct
Sports Direct International plc is a British retailing group. Founded in 1982 by former county squash coach Mike Ashley, the company is now the UK's largest sporting retailer through a number of retail subsidiaries and sports equipment brands. Although now a publicly traded company on the London...
. The fee is still to be reported.
On 10 February 2009, JJB put their Qube and Original Shoe Company subsidiaries into administration after failing to find a buyer. By the end of the week the Group secured a reprieve from its bankers to avoid putting the whole group into administration.
On 13 October 2009, JJB admitted that former executives were being investigated by both HM Revenue & Customs and the Serious Organised Crime Agency
Serious Organised Crime Agency
The Serious Organised Crime Agency is a non-departmental public body of the Government of the United Kingdom under Home Office sponsorship...
.
2011 major restructuring plan
JJB is one of many companies that has undergone major restructuring and change due to the recession and now faces a £31,500,000 debt, the closure of 95 stores and a possible hostile takeover by one of its top rivals, JD Sports, as of February 2011. The firm attempted to raise £65,000,000 in finances from its investors on April 7th, 2011.Brands
Under JJB's current administration, and in an effort to distance themselves from the majority "own-branded" offering of main competitor Sports Direct, JJB's stock package mainly comprises product from the main sportswear suppliers: NikeNike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...
, Adidas
Adidas
Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company , and Rockport...
, Puma
PUMA AG
Puma SE, officially branded as PUMA, is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two brothers deteriorated until the two...
, and Reebok
Reebok
Reebok International Limited, a subsidiary of the German sportswear company Adidas since 2005, is a producer of Athletic shoes, apparel, and accessories. The name comes from the Afrikaans spelling of rhebok, a type of African antelope or gazelle...
. Although they still stock own branded products such as Patrick (Menswear & Football Accessories), Olympus (Womenswear & Fitness Accessories, and Champion.
Marketing
JJB Sports launched their shopping site, JJB Sports Store, with a view to expanding their market. The majority shareholder of JJB Sports Plc was Dave Whelan but his 99% stake was sold off.JJB now no longer operates the famous "Soccerdomes", nor any GYMs or Fitness Clubs outside of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. Also, because of Dave Whelan's purchase of the Fitness Club and founding of DW (Dave Whelan) Sports in the autumn of 2009, JJB has lost its association with FC and Wigan Warriors
Wigan Warriors
Wigan Warriors is an English rugby league club based in Wigan, Greater Manchester. The club's first team squad competes in the engage Super League and the team are the current Challenge Cup holders as of the 27th August 2011....
RLFC. The stadium has also been renamed the DW Sports Stadium.
On 7th September 2011 JJB Sports launched a major new marketing campaign entitled "Ready?". The campaign involves prime time television advertising, national press coverage, in store promotions and online competitions. The Ready campaign is JJB Sport's first appearance on television for over 4 years and represents the company's push to become profitable again.
Price fixing
In 2003 JJB Sports were fined £8.3 million by the Office of Fair Trading (OFT) for fixing the price of England and Manchester United shirts in 2000 and 2001. Which?Which?
Which? is a product-testing and consumer campaigning charity with a magazine, website and various other services run by Which? Ltd ....
consumer magazine issued proceedings against JJB Sports to sue the high street retailer for damages on behalf of consumers who were affected by the price fixing. JJB may be fined a further £41.3 million for distorting the tennis racket market with its 'Slazenger' range in 2008.
Fitness clubs
JJB operated approximately 60 Health & Fitness Centres all over the UK.JJB also operate health and fitness centres in the Republic of Ireland.